Henry Liu
Former FPA Special Consultant
- Messages
- 473
US Existing Home Sales is expected to rise slightly from the previous month as current foreclosure rate is still remaining resiliently high. Here’s the forecast:
10:00am Existing Home Sales Forecast 5.21M Previous 5.10M
ACTION: EURUSD SELL 5.60M / BUY 4.80M
The Trade Plan
Because the Housing sector is one of the most focused news events out of the US, this release will certainly cause some volatility in the market, especially if our tradable figures (+/- 400K) were hit. With the focus of the nation, and of the world, on the status of U.S. housing sector, this release may bring about a strong sentiment of risk appetite/aversion if our BUY/SELL trigger is hit…
If our buy tradable deviation is hit, or 5.60M figure is released, we should look to SELL EURUSD after the release. If our buy tradable deviation is hit, or 4.80M figure is released, we should look to BUY EURUSD as USD should be sold off again.
We’ll be looking to trade this release using the after-news retracement trading method. We’ll wait for the release, wait for market reaction, and wait for retracement before jumping in. For more information:
Henry Liu's Trading Method
The Market
The U.S. housing market remains under heavy pressure as Bloomberg economists report a slight increase of 2% to 5.2 million. Gains in sales and construction are expected to gain little momentum due to a housing market consisting of falling home prices and a high number of unsold homes. Signs point to a weak economic recovery that is losing steam.
With foreclosure inventory rising another 2.2 Million in January, 4.7 Million households are behind on their mortgages, and S&P Homebuilder Index showing 9.7% decline in the last 12 months ending March 18, the US Housing sector is likely to remain under pressure.
Additional Thoughts
This release is scheduled at 10:00am US EST time, usually it is the last high impact news for the NY session, so we may see more volatile market regardless of the release figure because many traders may just be waiting for this news to be out of the way first.
Pre-news Considerations
There is no pre-news opportunity for this release.
Definition:
“Measures the annualized number of existing residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because large purchases tend to be made by consumers that are optimistic and confident in their financial position. The sale of a home also triggers commissions for real estate agents, and often home owners will purchase goods such as appliances and furniture shortly after purchasing a home. Traders watch this report closely as it’s the month’s first demand-side housing indicator to be released.”
Historical Chart and Data for US Existing Home Sales m/m
Thanks,
10:00am Existing Home Sales Forecast 5.21M Previous 5.10M
ACTION: EURUSD SELL 5.60M / BUY 4.80M
The Trade Plan
Because the Housing sector is one of the most focused news events out of the US, this release will certainly cause some volatility in the market, especially if our tradable figures (+/- 400K) were hit. With the focus of the nation, and of the world, on the status of U.S. housing sector, this release may bring about a strong sentiment of risk appetite/aversion if our BUY/SELL trigger is hit…
If our buy tradable deviation is hit, or 5.60M figure is released, we should look to SELL EURUSD after the release. If our buy tradable deviation is hit, or 4.80M figure is released, we should look to BUY EURUSD as USD should be sold off again.
We’ll be looking to trade this release using the after-news retracement trading method. We’ll wait for the release, wait for market reaction, and wait for retracement before jumping in. For more information:
Henry Liu's Trading Method
The Market
The U.S. housing market remains under heavy pressure as Bloomberg economists report a slight increase of 2% to 5.2 million. Gains in sales and construction are expected to gain little momentum due to a housing market consisting of falling home prices and a high number of unsold homes. Signs point to a weak economic recovery that is losing steam.
With foreclosure inventory rising another 2.2 Million in January, 4.7 Million households are behind on their mortgages, and S&P Homebuilder Index showing 9.7% decline in the last 12 months ending March 18, the US Housing sector is likely to remain under pressure.
Additional Thoughts
This release is scheduled at 10:00am US EST time, usually it is the last high impact news for the NY session, so we may see more volatile market regardless of the release figure because many traders may just be waiting for this news to be out of the way first.
Pre-news Considerations
There is no pre-news opportunity for this release.
Definition:
“Measures the annualized number of existing residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because large purchases tend to be made by consumers that are optimistic and confident in their financial position. The sale of a home also triggers commissions for real estate agents, and often home owners will purchase goods such as appliances and furniture shortly after purchasing a home. Traders watch this report closely as it’s the month’s first demand-side housing indicator to be released.”
Historical Chart and Data for US Existing Home Sales m/m
Thanks,
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